Since she had no assets at death, there her estate should not have any tax liability. Depending on the amount of assets transferred to the children, and the timing of those gifts, there may be a gift tax issue. Because the assets were transferred prior to death, they are considered gifts. Therefore the children's basis in those assets is the basis that your mother had in them, you don't get a stepped up basis. For example assume she had a house that she paid $25,000 for. It was transferred to you and you subsequently sold it for $100,000. You have a tax liability on a gain of $75,000.In many cases, it is advantageous from ta tax viewpoint to inherit the property, rather than receiving it as gift.